CHICONY — Interim / Quarterly Report 2021

Aug 27, 2021

==> picture [175 x 540] intentionally omitted <==

CHICONY ELECTRONICS

2Q21 Financial Results August 6, 2021

==> picture [146 x 540] intentionally omitted <==

Safe Harbor Notice

Chicony’s statement of its current expectations are forwardlooking statements which are subject to significant risks and uncertainties. Actual results may differ materially from those . contained in any forward-looking statements

2

==> picture [146 x 540] intentionally omitted <==

Sustainability Snapshot

Corporate Governance Performance

• Included in TWSE’s "Taiwan High Compensation 100 Index"

• Listed in TWSE’s "Taiwan Sustainability Value Index"

• Selected as a constituent of "TIP Taiwan Market CSR Small/Mid-Cap Index“

• Included in FTSE4 Good Index

Sustainable Value Chain Performance

• Started increasing the use of recycled plastics, around 10%~30%, in production for input device products and mobile keyboard modules

• All suppliers have signed “Commitment Statement on RBA Code of Conduct”, “Letter of Undertaking of Integrity for Suppliers” and “Declaration of Conflict-free Minerals”

• To reduce carbon emissions from transportation in Chicony’s factories, local procurement reached an average of 76% except for the new Thailand factory

Environmental Protection and Sustainability Performance

• The SBTi and TCFD projects were introduced in 2020 for the regular inventory and disclosure of climate change risk and opportunity management

• The Headquarters and factories in China and Thailand all completed ISO 140641:2018 validation and verification, which shall be the basis for the implementation of SBTi reduction

• In order to work with the "Three-Year Action Plan for Winning the Blue Sky Defense Battle", the company’s factories in China conducted a survey on raw material suppliers. Raw materials not complying with standards were all replaced

3

==> picture [146 x 540] intentionally omitted <==

Chicony’s Global Manufacturing Network

==> picture [507 x 407] intentionally omitted <==

----- Start of picture text -----

Taipei HQ
Wujiang
Thailand Chongqing Dongguan
----- End of picture text -----

4

==> picture [146 x 540] intentionally omitted <==

Positioned as Number 1 Global Market Leader

Chicony Continued to Achieve Leading Market Share

==> picture [557 x 362] intentionally omitted <==

----- Start of picture text -----

38%
NB Keyboard
41%
DT Keyboard
Number #1
Market
43%
Share in NB Camera Module
2020
48%
NB Adaptor
25%
IP Cam
----- End of picture text -----

5

==> picture [146 x 540] intentionally omitted <==

Consistent Dividend Pay-Out Policy to Reward Investors

Chicony	2016	2017	2018	2019	2020
EPS	5.24	5.9	5.22	8.45	7.80
Cash Dividend	4.25	4.45	3.80	5.90	5.50
Stock Dividend	0.05	0.05	0	0	0
Dividend Payout %	82%	76%	73%	70%	71%
Cash Yield Rate %	5.25	6.1%	4.8%	7.1	5.2

6

==> picture [146 x 540] intentionally omitted <==

2Q21 Revenue Increased 1% QoQ/YoY

==> picture [513 x 330] intentionally omitted <==

----- Start of picture text -----

2019~2021 Quarterly Revenue
NT$M
2019 2020 2021
30,000
25,137 25,293
25,000
20,000
15,000
10,000
5,000
0
1Q 2Q 3Q 4Q
----- End of picture text -----

7

==> picture [146 x 540] intentionally omitted <==

2Q21 GPM/OPM Similar to 1Q21

Million NT$	2Q 2021 1Q 2021 QoQ %2Q 2020 YoY %
Net Sales	25,293 100.0 25,137 100.0 0.6 25,096 100.0 0.8
COGS	(20,892) (82.6) (20,741) (82.5) (20,062) (79.9)
Gross Profit	4,401 17.4 4,396 17.5 0.1 5,034 20.1 -12.6
Operating Expense	(2,554) (10.1) (2,547) (10.1) (2,729) (10.9)
Operating Profit	1,847 7.3 1,849 7.4 -0.1 2,305 9.2 -19.9
Other Income/Expense	177 0.7 504 2.0 951 3.8
Profit Before Tax	2,025 8.0 2,353 9.4 -13.9 3,256 13.0 -37.8
Tax	(388) (1.5) (464) (1.8) (478) (1.9)
Net Income	1,323 5.2 1,569 6.2 -15.7 2,389 9.5 -44.6
After Tax EPS	1.87 2.23 -16.1 3.40 -45.0

8

==> picture [146 x 540] intentionally omitted <==

1H21 EPS Reached NT$4.10 with 18% YoY Increase

Million NT$	1H 2021 1H 2020 YoY %
Net Sales	50,430 100.0 43,206 100.0 16.7
COGS	(41,633) (82.6) (35,358) (81.8)
Gross Profit	8,797 17.4 7,848 18.2 12.1
Operating Expense	(5,101) (10.1) (4,257) (9.9)
Operating Profit	3,696 7.3 3,591 8.3 2.9
Other Income/Expense	681 1.4 (212) (0.5)
Profit Before Tax	4,377 8.7 3,379 7.8 29.5
Tax	(853) (1.7) (521) (1.2)
Net Income	2,892 5.7 2,429 5.6 19.1
After Tax EPS	4.10 3.47 18.2

9